Oklahoma Adopts Best Interest Annuity Rule

Posted on July 20th, 2023 at 1:14 PM
Oklahoma Adopts Best Interest Annuity Rule

From the desk of Jim Eccleston at Eccleston Law 

Oklahoma joins 39 other states including Illinois, Georgia, Washington, Florida, Tennessee, Kansas, Oregon, and Wyoming by finalizing a best-interest rule for annuities. The new rule is based on the standard set by the National Association of Insurance Commissioners, which seeks to align annuity rules with Reg BI.

The NAIC’s model offers states a template to create requirements aligning the regulation of annuity sales and recommendations with the federal regulation of securities by the Securities and Exchange Commission’s Regulation Best Interest rule. Like Reg BI, the NAIC model states that agents are not allowed to place their own financial interests ahead of clients, but does not mandate a fiduciary standard.

Sarah Wood, the Insured Retirement Institute director of state policy and regulatory affairs, explains: “When there’s an understanding of what the compliance expectations are
going to be and what they need to do to meet the requirements under the law, that’s beneficial for consumers and producers.” “Having that clarity, that consistency, when it comes to compliance is crucial.” 

According to Wood, California, Utah, and New Hampshire all could finalize their state rules before the end of the year.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

 

Tags: eccleston, eccleston law

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